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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Oct 19, 2022

Mutual Fund Expert... more
Barun Question by Barun on Oct 19, 2022Hindi
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Hope you are doing well. I am 30 years old and want to have a retirement corpus of 2-3 crore after 30 years. This year I have started MF investments in the following funds: 

1) Canara Robeco Bluechip Equity Fund Direct Growth ------- 1000 

2) Parag Parikh Flexi Cap Fund Direct Growth ------- 1000

3) Quant Active Fund Direct Growth ------- 1000

4) Quant Absolute Fund Direct Growth ------- 1000

I am intending to increase my investment by 10% every year. I will be highly obliged if you can kindly review my portfolio. Should I add 1 or 2 more funds to the portfolio?

Ans: No need to add any further funds, please continue!

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2024

Asked by Anonymous - Apr 03, 2024Hindi
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I am 50 working professional. Below is my MF portfolio . 1. Parag Parikh Flexi Cap Fund 2.6 lakhs + 10K SIP 2. PGIM India Midcap Opportunities Fund 1.85 L Value + 5K SIP 3. Quant ELSS Tax Saver Fund 80K 4. Axis Small Cap Fund 1.85 Lakhs Value + 5K SIP 5. Axis Gold Fund 75K Value + 5K SIP 6. Canara Robeco Bluechip Equity Fund 70K 7. Quant Multi Asset Fund 50K 8. SBI Magnum Income Fund 50K 9. ICICI Prudential Equity & Debt Fund 50K 10. Quant Active Fund 50K 11. ICICI Prudential Bluechip Fund 25K I want to build a retirement corpus of 2 crore in 10 years. I am planning to invest around 50K every month. Plus i have. surplus of 4Lakks which i want to invest in few of the MFs above. Planning to exit Canara Robeco bluechip and Axis Small cap soon. Please suggest if any changes you want me to do.
Ans: Given your goal of building a retirement corpus of 2 crores in 10 years and your current portfolio, here are some suggestions:

Increase SIP Contributions: Consider increasing your SIP amounts in high-performing funds like Parag Parikh Flexi Cap and PGIM India Midcap Opportunities Fund, which have shown good potential for long-term growth.

Review and Consolidate: Evaluate the performance of all your funds and consider consolidating your portfolio to fewer, well-performing funds to simplify management and potentially enhance returns.

Focus on Quality: Prioritize funds with strong track records, consistent performance, and experienced fund management teams. Consider adding large-cap and diversified equity funds for stability and balanced growth.

Asset Allocation: Ensure a balanced asset allocation across equity, debt, and gold funds based on your risk tolerance and investment horizon. Reallocate surplus funds strategically to maintain a diversified portfolio.

Regular Review: Monitor your portfolio regularly and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.

Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances and goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Money
Dear Sir, I am 55 years old working in private company. I am investing in following MF monthly, Nippon Small Cap - 10000, Axis Small cap - 10000, HSBC Mid Cap - 10000, ICICI Equity & Debt - 15000, Franklin India Prima fund - 15000, HDFC Balanaced Advantage - 20000. My current MF value is Rs. 1.34 Crores. Apart from this i have invested in Stocks - 36 Lac, PF - 45 Lac, NPS - 22 Lac, FD - 35 Lac. I have taken Health Insurance. I require around 40 Lac for my daughter marriage. 1. I want to know whether my MF portfolio is good to continue or any changes to be made for better return. 2. I will be retiring in 3 years. How i need manage my funds / invest further to achieve 5 Crores retirement fund.
Ans: You've done a commendable job with your investments. Balancing between mutual funds, stocks, PF, NPS, and FDs is impressive. Your dedication to securing your daughter's marriage fund and planning for retirement shows foresight and responsibility. Let's analyze and optimize your portfolio for the best possible returns.

Current Mutual Fund Portfolio

Your current mutual fund investments are diversified across various categories. This includes small cap, mid cap, equity & debt, and balanced advantage funds. Each type serves a unique purpose, balancing risk and return.

Small Cap Funds

Small cap funds have high growth potential but come with significant risk. Your investments in Nippon Small Cap and Axis Small Cap Funds are great for high returns over the long term. Given your proximity to retirement, it might be wise to reduce exposure to mitigate risk.

Mid Cap Funds

Mid cap funds like HSBC Mid Cap offer a balance between risk and return. They can provide substantial growth but are less volatile than small cap funds. Keeping a portion in mid cap is sensible, but consider reducing the allocation as you near retirement.

Equity & Debt Funds

ICICI Equity & Debt Fund provides a balanced approach, combining equity growth and debt stability. This fund type aligns well with your nearing retirement, offering moderate risk and steady returns.

Balanced Advantage Funds

HDFC Balanced Advantage Fund adjusts its allocation between equity and debt based on market conditions. This adaptability is beneficial for reducing risk while aiming for reasonable growth, making it suitable for pre-retirement phase.

Evaluation of the Portfolio

Diversification and Risk Management

Your portfolio is well-diversified across different fund types. However, considering your retirement in 3 years, a higher allocation towards stable, low-risk investments would be prudent. Shifting from high-risk small and mid cap funds to more stable options can protect your corpus.

Performance and Returns

Active funds have the potential to outperform the market. Your selection of actively managed funds is excellent. Regular monitoring and occasional rebalancing can enhance performance. Consult your Certified Financial Planner (CFP) for personalized advice.

Strategies for Future Investments
Risk Reduction

As retirement approaches, prioritize capital preservation. Gradually move funds from high-risk to low-risk investments. Consider increasing allocation in debt funds and balanced advantage funds. These provide stability and consistent returns.

Systematic Withdrawal Plan (SWP)

Implementing an SWP post-retirement ensures a steady income while keeping your investments growing. Plan withdrawals from your corpus strategically to balance between immediate needs and long-term growth.

Power of Compounding

Continue leveraging the power of compounding. Even conservative investments can grow significantly over time. Start transitioning funds early to maximize compound interest benefits while minimizing risks.

Managing Your Other Investments
Stocks

Your Rs 36 lakh in stocks should be evaluated for risk and return. Diversify across stable, high-dividend stocks to generate regular income. Consider reducing exposure to volatile stocks.

Provident Fund (PF)

Your PF of Rs 45 lakh is a substantial and safe retirement corpus. Continue contributions and leverage tax benefits. This fund provides a secure foundation for your retirement.

National Pension System (NPS)

With Rs 22 lakh in NPS, you have a tax-efficient retirement tool. Continue maximizing contributions. NPS offers a mix of equity and debt, providing growth with stability. Consider shifting allocation towards safer options as you near retirement.

Fixed Deposits (FD)

Your Rs 35 lakh in FDs ensures liquidity and safety. Continue using FDs for emergency funds and short-term needs. They offer guaranteed returns, aligning well with your low-risk strategy.

Planning for Your Daughter's Marriage
Marriage Fund Allocation

You need Rs 40 lakh for your daughter’s marriage. Keep this fund in low-risk, highly liquid investments. Short-term debt funds, FDs, or high-interest savings accounts are ideal. Avoid equity exposure for this goal due to market volatility.

Systematic Investment Plan (SIP)

If you haven't already, consider SIPs for a targeted marriage fund. SIPs in debt funds or balanced funds can help accumulate the required amount steadily. Regular contributions will build a substantial corpus by the time needed.

Achieving Your Rs 5 Crore Retirement Goal
Rebalancing Your Portfolio

Shift focus from high-risk to low-risk investments. Increase allocation in debt funds, balanced advantage funds, and other stable options. This transition should start now to align with your retirement timeline.

Increasing Contributions

Maximize your contributions to PF and NPS. Both offer tax benefits and long-term growth. Utilize any available tax-saving schemes to boost your retirement corpus.

Professional Guidance

Regularly consult your CFP. Their expertise will help you navigate market changes, optimize your portfolio, and ensure you stay on track towards your Rs 5 crore goal.

Regular Review

Conduct annual reviews of your portfolio. Adjust based on performance, market conditions, and your changing needs. Stay informed about economic trends and investment opportunities.

Final Insights
You've built a robust and diversified portfolio. Transitioning from high-risk to low-risk investments as you near retirement is crucial. Protecting your capital while ensuring steady growth will help achieve your Rs 5 crore retirement fund.

Stay disciplined with your investment strategy. Regularly consult your CFP for personalized advice. With careful planning and smart adjustments, you can secure a comfortable and financially stable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  |1225 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 05, 2025

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I am 35 years old & investing for 15-20 year in the following mutual funds : (1) Nippon India Large Cap Fund -4000 (2) Canara Robeco Emerging Equities -4000 (3) Parag Parikh Flexi Cap Fund -4000 (4) Motilal Oswal Elss Tax Saver Fund -4000 (5) Kotak Small Cap Fund -4000 [Monthly SIP] & (1) Mirae Asset Large Cap Fund -1.5 lac (2) SBI Focused Equity Fund -1.5 [lumsum]. Investing 5000 in PPF & 10000 in NPS monthly, increasing every year. My goal is to build corpus for my house, children edu. marriage (2-3Cr) and retirement purpose (5-6Cr) etc. Please review my portfolio. how many fund strictly should be added or exit from my portfolio ?
Ans: Hello;

Your lumpsum (3 L), monthly sip(20 K) and PPF (5 K/pm) may grow into a sum of 2 Cr in 20 years from now onwards, which goes towards your first goal.

While the NPS monthly contribution (10 K) towards retirement goal is significantly lower to fulfill target (5-6 Cr).

You may take either of following steps to enhance chances of building desired retirement corpus (5-6 Cr) by 60 years.

Monthly contribution to NPS should be increased to 60 K.

Start another monthly sip for 40 K for 25 years towards retirement goal fulfillment.

Returns assumed from various investments:
Mutual funds: 10%
PPF: 7%
NPS: 8%
These are purposely considered to be on moderate side.

Coming to your portfolio, I am assuming you are okay with an aggressive risk profile for 15-20 year horizon.

You may have following fund types and allocation:

Flexicap type mutual fund: 25%
Large cap type mutual fund: 25%
Multicap type mutual fund: 25%
ELSS or Value Fund: 25%

You already have 3 of the 4 fund types mentioned above. You may continue with them but review their performance annually.

For the multicap fund type you may select any fund from the top quartile in this category.

For the 40 K sip recommended for your retirement planning, you may continue with above fund types with 20% allocation and add one thematic fund from new technology sector for balance 20%.

Reiterating that this recommendation is assuming aggressive risk profile.

If your risk appetite is different then you may consult an MFD for suitable changes.

Best wishes;
X: @mars_invest

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 15, 2025
Money
I am 29 and earning 4 lakh per month. I want to purchas home but not on loan. How much should I save every month and and in which mutual fund should I invest so that I will be able to buy a house worth Rs 2 cr in next 5 years
Ans: Buying a Rs. 2 crore house without a loan by age 34 is ambitious and smart. With strong income and discipline, this is possible. Let us now build a step-by-step, practical approach to achieve it.

Let’s look at this with a 360-degree perspective. This includes savings, investment options, asset allocation, risk, taxation, and flexibility.

?

?Target Value Understanding

The home price you want is Rs. 2 crore.

?

Since there is no plan to take a loan, you need the full amount saved.

?

The timeline is 5 years, which is a medium-term goal.

?

Because this is not a long-term goal, the investment must be low to medium risk.

?

You will also need flexibility and liquidity near the fifth year.

?

The value of Rs. 2 crore will not change, as it is assumed to be in today’s terms.

?

?Savings Target Evaluation

To reach Rs. 2 crore in 5 years, you must save and invest every month.

?

A rough estimate shows that you may need to invest around Rs. 2.5 to 2.7 lakh monthly.

?

This assumes a return of 9–10% per year from your investments.

?

You earn Rs. 4 lakh monthly, so this goal is within reach if you maintain high savings.

?

Keep your monthly expenses tight and focused during these 5 years.

?

A disciplined savings plan is more important than investment returns.

?

?Asset Allocation Strategy

Do not invest 100% in equity. That is very risky for 5 years.

?

Use a balanced approach of equity and debt mutual funds.

?

Consider 60% in equity-oriented hybrid or multi-asset funds.

?

Keep 40% in short-duration or conservative hybrid debt funds.

?

This balance gives growth and protection from sudden market fall.

?

Review this mix yearly and reduce equity in last 1.5 years.

?

You may go from 60:40 to 40:60 and then to 20:80 before withdrawal.

?

?Mutual Fund Category Selection

Avoid pure small cap or sector-specific funds. They are too risky.

?

Choose diversified equity mutual funds with good track record.

?

Include large-cap oriented or equity and debt hybrid funds.

?

Debt side can include short-term, low duration, or corporate bond funds.

?

These can give reasonable returns without high risk.

?

Please do not invest in index funds. They follow the market.

?

In volatile times, index funds offer no downside protection.

?

Actively managed funds adjust to market conditions.

?

A good fund manager adds value by protecting capital in bad markets.

?

?Direct vs Regular Fund Investing

Do not invest directly into funds if you are not experienced.

?

Direct plans have lower cost but no guidance or service.

?

Regular plans through Certified Financial Planner offer full support.

?

CFPs select suitable schemes and help review every year.

?

Also help in planning redemptions, tax, and rebalancing.

?

?Taxation Planning and Exit Strategy

Short-term capital gains in equity funds are taxed at 20%.

?

Long-term capital gains above Rs. 1.25 lakh are taxed at 12.5%.

?

For debt funds, all gains are taxed as per your income slab.

?

You are in the highest slab. So, tax planning is key.

?

Start exiting your equity funds in the 4th year in a phased way.

?

Use STP (systematic transfer plan) to move equity gains to low-risk debt.

?

This spreads out gains and helps reduce tax burden.

?
?Liquidity and Risk Management

Market volatility can affect your fund value in short term.

?

So don’t wait till the last month to redeem.

?

Begin moving the funds 12 to 18 months before your house purchase.

?

This protects your goal from any sudden crash.

?

Also, maintain a 3 to 6-month emergency fund in liquid mutual funds.

?

Do not touch this fund even if markets fall.

?

?Contingency and Insurance Coverage

Ensure you have term insurance covering 15–20 times your annual income.

?

This protects your family in case of uncertainty.

?

Have Rs. 25 lakh or more of health insurance as well.

?

Don’t rely only on company insurance.

?

?Avoid These Common Mistakes

Do not keep money in FDs only. FD returns may not beat inflation.

?

Don’t invest in ULIPs or traditional insurance for this goal.

?

Avoid new-age options like crypto or PMS. They carry extra risk.

?

Don’t blindly trust social media fund suggestions.

?

Don’t chase past returns. Choose funds based on quality and process.

?

?Review and Track Progress

Review portfolio every 6 months with a CFP.

?

Stay flexible. Adjust fund types and allocation if needed.

?

Track goal progress. You must stay on Rs. 2 crore path.

?

If market underperforms, increase monthly saving a little.

?

If you earn more in future, raise your SIPs too.

?

?What You’re Doing Right

You are 29 and earning Rs. 4 lakh. Great starting point.

?

You have no loan now. So, more savings power.

?

You have set a clear goal and time frame. Very focused plan.

?

You are avoiding debt. That builds long-term strength.

?

?What You Should Watch Carefully

Don’t let expenses creep up with income growth.

?

Don’t delay investing. Every month matters.

?

Don’t go for short cuts or risky bets.

?

Stick to the plan, stay calm in ups and downs.

?

?How a Certified Financial Planner Helps

A CFP helps you choose funds that match your risk.

?

Helps align tax and liquidity needs.

?

Helps you exit smoothly at the right time.

?

Offers full hand-holding over these 5 years.

?

You focus on earning. Let the planner handle the rest.

?

?Final Insights

Saving around Rs. 2.5 to 2.7 lakh monthly is required.

?

Balanced allocation of equity and debt mutual funds is the way.

?

Stick to plan, monitor annually, reduce equity before maturity.

?

Tax planning, risk control, and goal protection are must.

?

You are already on the right track with strong income and discipline.

?

Make this goal the top priority. Avoid distractions.

?

A home bought debt-free gives great peace and freedom.

?

With focus and care, you will reach this dream in 5 years.

?

Best Regards,
?
K. Ramalingam, MBA, CFP,
?
Chief Financial Planner,
?
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 14, 2025
Money
I am 29 and have salary of 6 lakh. I am unable to decide if I should take home loan for 60 Lakhs
Ans: At 29 years old with a salary of Rs. 6 lakh, it is natural to feel confused about taking a home loan of Rs. 60 lakh. Let us assess this from every angle to help you take a wise decision.

You will find clarity as we go through all important aspects. Let us go step by step.

 
 
 

Understanding Your Financial Situation
You earn Rs. 6 lakh per year. That is Rs. 50,000 per month.

 
 
 

A Rs. 60 lakh home loan means a high EMI every month.

 
 
 

Most lenders will expect you to pay Rs. 48,000 to Rs. 55,000 per month as EMI.

 
 
 

Your EMI could eat up nearly your full monthly salary.

 
 
 

This is not a comfortable or safe financial position.

 
 
 

You may not have enough left for other expenses or goals.

 
 
 

Even a small emergency can create huge stress in such a tight budget.

 
 
 

Your Age and Career Stage
At 29, you are early in your career. Growth is possible.

 
 
 

But early years also carry career uncertainties.

 
 
 

You may switch jobs or cities. Or wish to study further.

 
 
 

A big loan reduces flexibility in your career choices.

 
 
 

If income is unstable, EMI stress can become a burden.

 
 
 

It's wiser to build financial strength before big commitments.

 
 
 

Home Loan and Bank Rules
Banks allow EMI up to 50% of income in general.

 
 
 

For a Rs. 50,000 salary, safe EMI is below Rs. 25,000.

 
 
 

A Rs. 60 lakh loan goes far beyond this limit.

 
 
 

Most banks may not even approve your loan alone.

 
 
 

They may ask for a co-borrower with income.

 
 
 

Or they may reduce the loan size or increase tenure.

 
 
 

Longer tenure means more interest cost.

 
 
 

Higher loan size means higher down payment too.

 
 
 

Have you saved at least Rs. 10-15 lakh as down payment?

 
 
 

If not, you will need to take a personal loan too. That is risky.

 
 
 

Renting vs Buying in Your Case
Renting is flexible, light, and low on commitment.

 
 
 

You can change house, city, or job with ease.

 
 
 

Owning a house means heavy EMIs, taxes, and maintenance.

 
 
 

It also means less liquidity for emergencies.

 
 
 

In your income range, renting is more practical.

 
 
 

If your salary crosses Rs. 12-15 lakh later, then buying is easier.

 
 
 

Your Other Financial Goals
Do you have an emergency fund of 6 months’ expenses?

 
 
 

Do you have a health insurance and a term insurance?

 
 
 

Have you started your SIPs for wealth building?

 
 
 

Are you saving for retirement or other future goals?

 
 
 

These are more important than owning a house right now.

 
 
 

Owning a house can wait. Wealth building cannot.

 
 
 

First build strong financial foundation through SIPs in mutual funds.

 
 
 

Use regular plans through a trusted MFD with CFP credential.

 
 
 

Disadvantages of Index Funds
Index funds are unmanaged. They blindly copy the index.

 
 
 

They do not protect your money during market falls.

 
 
 

They perform well only in bullish markets.

 
 
 

There is no expert management for risk.

 
 
 

Actively managed funds have better downside protection.

 
 
 

A Certified Financial Planner can help you choose better performing funds.

 
 
 

Dangers of Direct Mutual Funds
Direct funds seem cheaper but are often misused.

 
 
 

There is no guided review or personalised help.

 
 
 

You may make wrong choices in fund type or category.

 
 
 

Without an expert, your returns can suffer over time.

 
 
 

Always prefer regular funds with guidance from a CFP through an MFD.

 
 
 

Emotional Readiness to Own a Home
Owning a house feels good emotionally.

 
 
 

But emotional comfort must match financial strength.

 
 
 

Are you buying to impress family or society?

 
 
 

Or do you really need a house now?

 
 
 

Let emotions wait. Let logic lead.

 
 
 

Financial peace is better than emotional impulse.

 
 
 

Rising Cost of Living
Food, rent, fuel and lifestyle costs are all rising.

 
 
 

EMIs should never choke your day-to-day comfort.

 
 
 

Sudden expenses like weddings, illness or loss of job can hit.

 
 
 

With a high loan, you will have no cushion.

 
 
 

Living within means is safer than stretching for status.

 
 
 

Use the Time to Grow Your Wealth
Build your SIPs slowly and increase them every year.

 
 
 

Build Rs. 30 to 50 lakh over 5-7 years in mutual funds.

 
 
 

This can become your future home down payment.

 
 
 

Or help you buy a house without a huge loan.

 
 
 

Let compounding work for you first.

 
 
 

Your Long-Term Security
What if you want to retire early?

 
 
 

What if you want to start a business in 5 years?

 
 
 

What if you want to support parents or travel the world?

 
 
 

All these dreams need money and flexibility.

 
 
 

A home loan of Rs. 60 lakh ties you down.

 
 
 

Delay it till your income is strong and stable.

 
 
 

Don’t Mix Insurance with Investment
If you are also paying for LIC or ULIP policies, rethink them.

 
 
 

These policies have poor returns and high lock-in.

 
 
 

If you hold them, consider surrendering and reinvesting in mutual funds.

 
 
 

Mutual funds give more transparency and higher long-term growth.

 
 
 

Income-to-EMI Ratio Must Be Comfortable
Ideally, EMI must not exceed 30% of your take-home salary.

 
 
 

You are far above this limit with Rs. 60 lakh loan.

 
 
 

Wait till your income crosses Rs. 1.5 lakh per month.

 
 
 

That is the time to take big commitments safely.

 
 
 

Loan Eligibility is Not Same as Affordability
Just because the bank approves, doesn’t mean you can afford.

 
 
 

Banks do not check your lifestyle goals or future plans.

 
 
 

You must take full responsibility of your decision.

 
 
 

Afford only what fits your budget and life goals.

 
 
 

Market Cycles and Interest Rates
Interest rates are not fixed forever.

 
 
 

EMI may go up in the future if rates rise.

 
 
 

That will add more pressure on your income.

 
 
 

Property markets may also not grow much in 5 years.

 
 
 

Do not assume your house will grow quickly in value.

 
 
 

Focus more on liquidity and wealth than immovable assets.

 
 
 

Building Net Worth with Peace of Mind
Mutual fund SIPs give you peaceful growth without burden.

 
 
 

They are flexible, liquid and growth-oriented.

 
 
 

You can pause, stop or increase anytime.

 
 
 

You can access money in emergencies.

 
 
 

You are in full control of your money.

 
 
 

Finally
A home loan of Rs. 60 lakh is too big for Rs. 6 lakh income.

 
 
 

It can cause stress and reduce life quality.

 
 
 

First focus on saving, investing, and growing your income.

 
 
 

Once your income grows and savings rise, buying a house gets easier.

 
 
 

For now, rent peacefully and invest wisely.

 
 
 

Build a secure financial base before taking large loans.

 
 
 

You are doing well already by thinking long term. Keep going.

 
 
 

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 12, 2025
Money
Hi sir I'm 26 years old I do have a personal loan 60k And credit outstanding amount of 56k of 70k limit and 3 and small loan 9k and 20k and 32 k and also I have a business loan of 70k outstanding amount of 38k and i don't do a business any more so I'm working and earning 25k months anfd rented a room of 7k so I don't miss my loan payment but because of my credit utilisation is high I could not get any higher loan which I want to take and close all loan and outstanding credit and focust on one loan emi payment so plz of there any suggestions and idea to help me out I'll be verry great full thank you
Ans: You are taking full responsibility. That’s a great step.

You are 26 years old. You have a monthly income of Rs.25,000.

You live in a rented room paying Rs.7,000 rent.

You are managing to pay EMIs regularly, which is good.

But high credit card usage and multiple small loans are affecting your credit score.

You want one big loan to repay all others and focus on one EMI.

Let’s explore your case in detail and build a solution that works for you.

Understanding Your Current Situation

Your monthly income is Rs.25,000.

You pay Rs.7,000 as room rent every month.

That leaves you with Rs.18,000 for EMI and other expenses.

You are managing your loan payments on time. That’s a good habit.

But your credit card has Rs.56,000 used out of Rs.70,000 limit.

That is almost 80% credit utilisation. That reduces your credit score.

You also have small loans of Rs.9,000, Rs.20,000 and Rs.32,000.

Your old business loan has Rs.38,000 outstanding now.

Total outstanding across all loans is around Rs.1.55 lakhs.

You are not defaulting. But multiple loans make it hard to get a new big loan.

Lenders see high utilisation and multiple active loans as risky.

Why Credit Score is Low Right Now

Credit cards should not be used beyond 30% of limit.

You are using 80% of your credit card limit.

That lowers your credit score sharply.

Multiple loans from different lenders also create negative image.

Even if you are paying on time, the system sees you as credit-hungry.

That stops you from getting a new loan.

Your Thought is Correct – One Loan is Better

One loan with single EMI is always better than 5 small loans.

It’s easier to manage.

It improves your credit score faster.

It reduces monthly confusion and mental pressure.

Also helps you plan savings better.

But Why You Are Not Getting a New Consolidation Loan Now

Banks are checking your credit score and seeing high card usage.

They are also seeing 5 open loans. That’s a red flag for them.

Even though total loan amount is not very high, lenders don’t see it that way.

Lenders want to give loan to people who look stable, not stressed.

What You Can Do Now Step-by-Step

Let us go step-by-step in your case. These are realistic and practical.

Step 1: Stop Using Your Credit Card for Now

Use only debit card or cash. Avoid any credit card purchases now.

Every new swipe will increase your credit usage and lower your score further.

Try not to spend from your credit card until it is fully paid.

Step 2: Pay Off the Smallest Loans First

You have 3 small loans — Rs.9,000, Rs.20,000, and Rs.32,000.

Focus on closing Rs.9,000 loan first.

Then go for Rs.20,000.

Then the Rs.32,000 one.

Every loan closure improves your score.

Even closing one small loan increases your chance to get a bigger loan.

It will also reduce your monthly EMI burden.

Step 3: Don’t Miss Any EMI Ever

Even one missed EMI can delay your score improvement by 6 months.

Always pay loan EMIs before due date.

If needed, cut down on other personal expenses like dining, mobile recharge, or travel.

Your priority is loan EMI first.

Step 4: Talk to a Certified Financial Planner or MFD for Debt Counselling

You may think CFPs are only for rich people. But they help everyone.

A good Certified Financial Planner can analyse your loans and build a simple repayment plan.

They can also connect you to NBFCs who give consolidation loans.

CFPs give emotional support too, not just financial advice.

Step 5: Use EMI Moratorium Only if Things Get Very Hard

You can request for loan restructuring or moratorium if things go out of hand.

But only use this option as last resort.

Moratorium affects your credit report for 6 to 12 months.

It should not be the first choice.

Step 6: Don’t Apply for Any More Loans Now

Every new loan application creates a hard enquiry.

Too many enquiries in credit report will hurt you more.

For now, focus on reducing your loans. Don’t try for a new one.

Wait for at least 3 months of regular payment and credit card discipline.

Step 7: Try for a Salary Advance from Employer or HR

If you work in a company, try asking for a salary advance.

Some employers give interest-free salary advance for emergencies.

That can help you close a small loan without affecting credit score.

Step 8: Start Building a Simple Emergency Fund

After clearing 1 or 2 loans, begin saving Rs.1,000 every month.

Build emergency fund slowly. You don’t need a big amount in one shot.

Emergency fund stops you from taking new loans for small issues.

This is a very important part of financial peace.

Step 9: Consider a Peer-to-Peer Lending Platform

Some peer-to-peer (P2P) platforms give small consolidation loans.

They are not banks, but they offer structured loans.

Their rules are less strict than banks.

But always check the legal approval and RBI registration before using them.

Step 10: Start Improving Your Credit Score Bit by Bit

Credit score is like a school report card. You must build it year by year.

Close small loans.

Don’t spend more than Rs.10,000 on your credit card until score improves.

If you pay full dues and stay below 30% limit, score improves fast.

Check score once in 6 months using platforms like CIBIL or Experian.

Why Not Take Loan from Friends or Family

You may think to borrow from friends. But that creates emotional pressure.

Family support is good, but should not be taken for granted.

Always try to repay every personal loan with respect.

If you borrow, write it on paper and keep track.

Avoid Payday Apps and Fast Loan Apps

Never use mobile apps that give 1-hour loan with 40% interest.

These apps are illegal and harmful.

They threaten, misuse data, and insult borrowers.

Always stay with legal lenders, NBFCs or banks.

Avoid Real Estate or Gold Loan to Pay Off Debts

Don’t pledge gold for these small loans.

Don’t try to invest in land or property when you are under loan pressure.

Real estate is not the answer to solve loan problems.

Final Insights

You are thinking in the right direction. That is a strength.

Trying to close all loans with one EMI is a smart plan.

But you need to first improve your credit score before getting that big loan.

Pay off smallest loans one by one. It is the fastest way to build score.

Use credit card only after full payment. Never more than 30% of limit.

Avoid taking new loans or applying for loans again and again.

Focus on repaying old ones and then apply after 6 months.

Build a small saving habit also once 1 or 2 loans are closed.

Don’t worry too much. Many have come out of this same situation.

With some discipline, you can also be debt-free in 12 to 18 months.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
If one invests in ELSS, is Section 80c deduction available against the SHORT TERM CAPITAL GAINS FROM DEBT MUTUAL FUNDS which is taxed at SLAB RATES and is NOT COVERED UNDER SECTION 111(A) Also, is Rebate under section 87a available in OLD TAX REGIME for incomes from LTCG FROM DEBT MUTUAL FUNDS and STCG from Equity and Debt MUTUAL FUNDS
Ans: Many investors miss the fine details around taxation of mutual fund gains and how tax benefits such as Section 80C deductions and Section 87A rebate apply, especially under the old tax regime.

Let’s explore the answer from a 360-degree personal finance perspective, and break down the two main parts of your query with clarity and structure.

Section 80C and Its Relationship with Mutual Fund Gains
Section 80C allows deduction up to Rs. 1.5 lakh from your gross total income.

ELSS (Equity Linked Saving Scheme) qualifies under this section.

This deduction reduces your taxable income, not the tax on capital gains.

ELSS investment will not offset or reduce capital gains tax directly.

It reduces overall gross income, subject to Section 80C cap.

Short Term Capital Gains (STCG) from debt mutual funds are taxed at slab rates.

This tax applies after your income is reduced by Section 80C deductions.

So yes, investing in ELSS does help lower overall income, not specific STCG tax.

You may get lower slab if ELSS brings your income into next slab bracket.

But it will not specifically reduce only the STCG tax portion.

STCG from Debt Mutual Funds and Section 80C Interaction
STCG on debt funds is now taxed at your income tax slab rate.

There is no benefit under Section 111A for debt mutual fund STCG.

Section 111A only covers STCG on equity mutual funds, taxed at 20%.

Section 80C deduction is applied to total income, not specific gain types.

So, if your gross income is Rs. 8 lakh, and Rs. 1.5 lakh goes into ELSS,

Taxable income becomes Rs. 6.5 lakh. STCG from debt is added here.

So ELSS reduces the tax base, not tax on specific STCG directly.

Section 87A Rebate in Old Tax Regime: Detailed Understanding
Section 87A gives rebate up to Rs. 12,500.

Available when total taxable income is up to Rs. 5 lakh.

This benefit exists even under the old tax regime.

So, if after deductions your taxable income is under Rs. 5 lakh,

Then no tax is payable even if you have capital gains.

But this rebate applies to total tax liability, not just salary.

If you have LTCG or STCG, it counts as income.

And if after adding capital gains your income crosses Rs. 5 lakh,

Then you lose the Section 87A rebate.

So plan smartly to keep income within that slab, if possible.

LTCG from Debt Mutual Funds: Interaction with Section 87A
From April 2023, LTCG and STCG in debt mutual funds are treated equally.

Both are taxed as per slab rate, no indexation benefit is allowed.

So even LTCG from debt funds adds to total income.

Rebate under Section 87A can still apply if net income is under Rs. 5 lakh.

But if income becomes Rs. 5.01 lakh, rebate is fully lost.

There is no partial rebate if you cross Rs. 5 lakh limit.

Plan ELSS, deductions, HRA, and 80D well to stay under Rs. 5 lakh if possible.

STCG from Equity Mutual Funds: Special Rule
STCG from equity mutual funds is taxed under Section 111A.

Flat 20% tax is applicable.

Section 87A does not cover tax under Section 111A.

Even if income is below Rs. 5 lakh, tax on equity STCG is payable.

So, you may end up paying tax on STCG despite low income.

Plan to time redemptions and match losses if possible.

Final Insights
ELSS under Section 80C helps reduce total income, not just gains tax.

Tax from STCG debt funds is applied after deductions, at slab rate.

Rebate under Section 87A in old regime is available up to Rs. 5 lakh income.

But it doesn’t cancel out STCG from equity funds taxed under Section 111A.

LTCG from debt funds is now fully taxable at slab rate, just like STCG.

You should always aim to optimise your deductions to bring income down.

Use ELSS, 80D, and other deductions to minimise tax in old regime.

Always time your redemptions of mutual funds across financial years.

Plan gains to fall in different tax years to use 87A effectively.

Rebalance gains and losses. This helps manage tax and maintain allocation.

Avoid investing in index funds. They do not beat market returns.

Actively managed funds offer alpha, better opportunity, and sector shifting.

Direct mutual funds may save commissions, but lack expert advice.

A Certified Financial Planner through a Mutual Fund Distributor gives you full support.

Helps in fund selection, review, tax efficiency, and portfolio alignment.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - Apr 23, 2025
Money
I have 12 c worth assets 1.2 c as fds 25 lakhs nsc 50 lakhs shared others investments nps insurance etc 30 lakhs real estate is 8 c I am 50 years want to retire in another 10 years. My husband and I earn 4 lakhs per month. Our expenditure is 1 lakh per month. How safe are we for our retirement
Ans: You're 50 years old and planning to retire in 10 years. You and your husband earn Rs. 4 lakhs monthly. Your monthly expenses are Rs. 1 lakh. Your total asset value is Rs. 12 crores, split across FDs, NSC, shares, NPS, insurance, and real estate. Let's assess your retirement readiness from a 360-degree angle.

This is a detailed answer as per your preferences. Every part has been structured to make it clear and helpful.

Household Cash Flow and Surplus
You are earning Rs. 4 lakhs every month.

Your expenses are just Rs. 1 lakh per month.

That means you save Rs. 3 lakhs monthly as surplus.

This strong saving rate gives you excellent wealth-building power in next 10 years.

Please ensure you invest the entire surplus. Idle money loses value due to inflation.

Fixed Income Assets
You have Rs. 1.2 crore in fixed deposits.

You also have Rs. 25 lakhs in NSC.

Combined, your low-risk assets are Rs. 1.45 crores.

These instruments give stable income but lower returns.

They will not beat inflation in long term.

After retirement, you should avoid putting large amounts in these.

Equity and Growth Assets
You have Rs. 50 lakhs in shares and other investments.

You also have Rs. 30 lakhs in NPS and insurance-linked instruments.

You have time till 60 to grow this further.

These assets will drive future income and capital appreciation.

However, insurance-based investments must be checked closely.

If you hold any ULIP or endowment policy, please surrender.

Redirect that money into mutual funds or equity.

Real Estate Holdings
You have real estate worth Rs. 8 crore.

Real estate gives psychological security.

But it offers poor liquidity and low regular income.

Selling real estate is not easy in retirement.

Do not count full value of property for retirement.

Count only one-third or rental income if any.

Your Ten-Year Window
You have 10 more years of earning capacity.

This is your most important decade to plan and invest.

Use your monthly surplus to build an equity mutual fund portfolio.

SIPs in midcap, flexicap, multicap, and sector funds are useful.

Regular mutual funds via a CFP-led MFD is ideal.

They help with rebalancing, asset allocation, and fund performance tracking.

Direct plans do not offer such ongoing guidance or fund review.

Post-Retirement Inflation Planning
Your current expenses are Rs. 1 lakh per month.

In 10 years, at 6% inflation, it will become Rs. 1.80 lakh.

That is Rs. 21.6 lakh per year.

For a 25-30 year retirement, you need large corpus.

Around Rs. 5–6 crore should be available for spending and medical care.

Your assets can provide this, but need to be managed wisely.

Healthcare and Insurance Review
Medical costs are rising very fast.

Ensure you and your husband have Rs. 25 lakh health insurance each.

Buy top-up policy if current coverage is low.

Do not rely on fixed deposits for medical needs.

Keep a Rs. 10 lakh liquid emergency fund.

Retirement Income Strategy
Rental income from property can help.

But make sure it is dependable and not vacant often.

From age 60, start SWP from mutual funds.

Mix equity and debt funds to balance growth and safety.

Do not use annuity plans. They give low returns and block capital.

Tax Strategy
New mutual fund taxation must be understood.

Equity mutual funds – LTCG above Rs. 1.25 lakh taxed at 12.5%.

Short-term capital gains are taxed at 20%.

Debt funds are taxed as per income tax slab.

Work with your CFP to plan redemptions tax-efficiently.

Investment Style Assessment
Avoid index funds.

They track market averages, not outperform them.

Active funds are better. They chase alpha.

Active fund managers adjust sectors, stocks, and timing.

That suits your retirement goal where return must beat inflation.

Real Estate Note
You have already invested Rs. 8 crore in property.

Do not buy more for retirement income.

Use financial instruments for liquidity and returns.

Property resale takes time. May not help in emergency.

Recommendations for Next 10 Years
Build Rs. 4 to 5 crore mutual fund portfolio before retirement.

Use monthly surplus of Rs. 3 lakh wisely.

Split monthly savings across equity mutual funds, debt funds, gold.

Use a mix of multicap, flexicap, large and midcap funds.

Gold ETFs up to 10% help hedge inflation.

Avoid investing in direct equity without research or tracking.

Children and Legacy Planning
If you have children, plan for their education and marriage separately.

Do not mix retirement savings with these goals.

Make a will. Register it properly.

Nominate correctly in all accounts and policies.

Monitoring and Rebalancing
Review your investments every year.

Exit underperforming funds.

Rebalance equity-debt mix regularly.

After age 60, slowly reduce equity allocation.

Move towards more predictable income assets.

Professional Guidance
Work with a Certified Financial Planner.

They give unbiased advice and long-term planning.

A CFP can help build a customised retirement roadmap.

Avoid investing based on tips, trends, or news.

Finally
You are in a very strong position.

Your savings rate is excellent.

Your assets are diversified.

You have 10 years to reach retirement target.

Focus on discipline, review, and asset allocation.

Do not let real estate dominate your plan.

Build Rs. 6 crore in liquid and semi-liquid assets before 60.

With right planning, your retirement can be peaceful and confident.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
sir I have invested Monthly since last 2years on the following Mutual funds Rs6000 in HDFC Top 100, In Invesco global consumer Rs. 5000, DSP ELSS Rs5000,PGIM Mid cap opportunity fund Rs.5000 axis Mutual Fund special situation Rs.2000, Hdfc mid cap Rs.5000, Quant mid cap 10000, Icici Prudential Manufacturing Rs.5000,Tata Infrastructure Fund Rs.5000,Invesco India PSU fund Rs.5000,Motilal Oswal Large and mid cap fund rs.5000, sbi energy opportunity fund rs 5000, Tata Digital fund rs 5000, Hdfc defense fund rs 5000, after 10 years how much Total corpus I will get . I want to make 3cr in next 10 years corpus for this where I have to invest and how much
Ans: You are investing Rs.77,000 monthly across various mutual fund schemes.

You’ve completed 2 years. You plan to continue for 10 more years.

You want to know two key things:

How much corpus can you expect after 10 years?

How to reach your target of Rs.3 crores?

Let us explore this in detail with a professional and 360-degree view.

I’ll write this in a simple tone with short sentences, as per your guidance.

Let’s begin.

Your Current Investment Summary

You are investing Rs.77,000 monthly in mutual funds.

You’ve done this consistently for the last 2 years.

You’re planning to continue for another 10 years.

Your current SIPs are spread across large cap, mid cap, sectoral, ELSS and global funds.

That shows discipline and commitment. Appreciate your long-term vision.

This strategy gives long-term compounding benefit.

Diversification across sectors also helps reduce some risk.

But too many funds may reduce effectiveness.

Expected Corpus in 10 Years with Current SIPs

If you continue Rs.77,000 monthly for the next 10 years…

And assuming average returns around 11% to 12% per year…

Your total corpus may become between Rs.1.60 crores to Rs.1.75 crores.

This is over and above the Rs.20 lakhs already invested in the last 2 years.

Including the existing corpus, your total may reach Rs.2.10 to Rs.2.25 crores.

This is a good base, but still short of Rs.3 crore target.

There is a gap of about Rs.75 lakhs to Rs.90 lakhs.

That gap needs to be addressed carefully.

How Much More is Required to Reach Rs.3 Crores

You need to increase your monthly SIP.

Increasing SIP by Rs.20,000 to Rs.25,000 monthly can help bridge the gap.

Even a 10% annual SIP step-up can accelerate growth.

But it must be sustainable and consistent.

Avoid large fluctuations in SIP values every year.

Ideal SIP Amount to Target Rs.3 Crores

For a target of Rs.3 crores in 10 years…

You may need to invest about Rs.95,000 to Rs.1,00,000 monthly.

You are already investing Rs.77,000. So only Rs.18,000 to Rs.23,000 more is needed.

If income grows yearly, increase SIPs by 10% annually.

This method works better than one-time increase.

Gradual increase suits most investors mentally and financially.

Assessment of Fund Category Mix

Your current funds include many sectoral schemes.

Sector funds carry higher risk and volatility.

Overexposure to such funds may reduce consistency.

You also have multiple midcap funds.

While midcaps give growth, they can fall sharply in downturns.

A balanced mix of large cap, flexi cap, and mid cap is better.

You may reduce sectoral funds and focus more on diversified categories.

Suggestion: Trim the Number of Funds

You have more than 12 mutual fund schemes now.

This leads to portfolio overlap and confusion.

Fund performance becomes difficult to track.

Too many schemes also duplicate stocks.

Best is to keep only 5 to 7 well-selected schemes.

Choose those which consistently beat benchmarks over 5+ years.

Keep them from different categories for better balance.

Keep More in Diversified Equity Funds

Avoid high allocation to thematic or sector-specific funds.

Sectors like defence, infrastructure, digital, PSU are cyclical.

They don’t perform all the time.

For long-term wealth, diversified funds work better.

Flexi cap and multi-cap funds adapt better to market cycles.

You may retain 1 sectoral fund, but not more than that.

Over-diversification in sectors reduces stability.

Avoid Index Funds Completely

Index funds are passive. They copy market index.

They don’t aim to beat returns.

In India, active funds often outperform index funds.

Also, index funds fail in sideways or falling markets.

They don’t protect downside.

Expense ratio may be low, but so are returns.

With Certified Financial Planner and MFD, regular funds give better support.

Active funds have dynamic portfolio management.

Stick to Regular Mutual Funds Through MFDs and CFPs

Direct funds may seem cheaper. But they lack guidance.

Most investors make wrong entries and exits in direct funds.

They often get average or below-average returns.

With regular funds via MFD and CFP, advice is continuous.

Emotional handholding is equally important as returns.

CFPs also monitor rebalancing, asset allocation, and fund changes.

They help you stay on track in volatile markets.

Taxation of Mutual Funds Must Be Understood

Under new rules, equity fund LTCG above Rs.1.25 lakhs is taxed at 12.5%.

Short term gains (less than 1 year) taxed at 20%.

So, long holding period is good.

Avoid frequent switches or redemptions.

SIPs older than 1 year become tax efficient.

Maintain SIPs minimum 5 to 7 years for optimal results.

Strategy to Reach Rs.3 Crore in 10 Years

Increase SIP to Rs.95,000 to Rs.1 lakh monthly.

Stick to 5 to 7 diversified equity funds only.

Remove excess sectoral and overlapping schemes.

Add flexi cap, large and midcap, and ELSS for discipline.

Review performance once in a year with your CFP.

Step up SIPs by 10% annually, if income allows.

Reinvest all dividends and don’t withdraw midway.

Track fund consistency, not just recent returns.

Invest only through CFP-led MFD platforms for better behaviour tracking.

Avoid These Common Mistakes

Don’t stop SIPs in falling markets.

Don’t chase short-term top-performing funds.

Avoid direct mutual funds without proper tracking.

Don’t rely heavily on infrastructure, defence or PSU funds.

Don’t withdraw unless it’s an emergency.

Don’t compare portfolio with friends or relatives.

Monitor Investment Journey Yearly

Check corpus progress every 12 months.

Ensure you’re on track to Rs.3 crore.

Your CFP can use goal-tracking tools to assist.

Adjust funds if performance drops consistently.

Don’t panic over short-term falls.

Keep long-term mindset always.

Keep updating your KYC, FATCA, nominee details yearly.

Stay invested through all market cycles.

Behavioural Discipline is More Important Than Fund Selection

Even best fund can’t deliver if you stop SIPs halfway.

Behaviour matters more than timing or fund choice.

Investing monthly is already a big success.

Staying for 10 years multiplies your advantage.

Role of Emergency Fund and Insurance

Keep Rs.3 to Rs.6 lakhs as emergency fund.

Don’t touch mutual funds for short-term needs.

Have Rs.10 lakh health insurance and term insurance of Rs.1 crore minimum.

This protects your SIPs in emergencies.

Review insurance covers every 2 years.

Finally

You are already on a strong path with Rs.77,000 SIP.

Just increase it by Rs.20,000 monthly to target Rs.3 crores.

Avoid holding too many funds. Keep it focused and diversified.

Say no to index and direct funds.

Stick to regular plans with Certified Financial Planner support.

Remove excess sectoral allocation. Stay with core categories.

Review annually with your CFP. Adjust if needed.

Don’t lose focus in market corrections.

Rs.3 crores is very much achievable with these steps.

Stay consistent. Stay informed. Stay disciplined.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - Apr 17, 2025
Money
I am investing monthly 15K in gold ETF and 40K in Mid and small cap fund, 10K building own equity portfolio spread across multiple sectors and mid cap section mostly ... Existing mutual fund across all the above category is around 5.5 lakhs I have a corpus is 20 lakhs in a separate portfolio managed by my wealth manager who churns around 20% annually ( no plan to withdraw for 10 years) I have ulip investment worth 1,75 Crores and 15 years balance for my retirement ... .(maturing at the time of my retirement, average maturity is 10 years & any maturity will be reinvested in mutual fund or equity till 2038 )Over and above have two property worth 2.25 crore and planning to buy one in prime location of Mumbai worth rs. 2.25 crore (10 year loan) this year... At the end of retirement where do you see the value of all portfolio going ?
Ans: You have done a very good job building assets. Your diversified investment style shows strong awareness and a long-term mindset. Your clarity for retirement planning is strong. Now, let us look at your total portfolio with a 360-degree lens and assess the future value.

This answer is structured to give you full clarity, confidence, and direction.

Mutual Funds – Mid and Small Cap Exposure

You are investing Rs. 40,000 per month in mid and small cap funds.

These funds carry high return potential over long term.

Since your time horizon is long, the volatility risk is manageable.

With a 13–15 year horizon, compounding can create a strong growth engine.

Mid and small cap funds need regular monitoring.

Please track fund performance yearly with the help of a Certified Financial Planner.

Do not exit based on short-term underperformance.

Continue SIPs without breaks.

Stay invested through market cycles.

This single step brings consistency.

Based on your contribution and horizon, value can grow significantly.

This part of your portfolio can deliver alpha, if maintained with discipline.

But review allocation if exposure crosses 50% of equity corpus.

Overexposure may increase portfolio volatility.

As retirement nears, you must shift this part slowly to stable funds.

Gold ETF – Monthly Rs. 15,000 Investment

You are investing Rs. 15,000 monthly in Gold ETF.

Gold brings diversification.

But it is not an income-generating asset.

It acts more like an insurance during uncertainty.

Gold ETF does not give interest or dividends.

It may underperform in years when equity performs well.

Holding 5–10% of portfolio in gold is fine.

Don’t increase it further unless specific family needs exist.

At retirement, gold can be partial liquidity reserve.

It will not build long-term wealth like equity.

Own Equity Portfolio – Rs. 10,000 Monthly

You are building a personal equity portfolio across sectors.

This requires stock selection skills and time.

Midcap focus brings higher returns but higher risk.

Avoid overexposure to any one sector or theme.

Rebalance if few stocks grow too large.

Track stock fundamentals every six months.

Don’t hold underperformers emotionally.

If this grows above 15% of equity exposure, shift to funds.

Equity investing is rewarding only when based on research.

Mutual Fund Holdings – Rs. 5.5 Lakhs Currently

Your mutual fund base is still growing.

Add new lump sums from bonuses or any surplus to these funds.

Avoid using direct funds without expert help.

Direct funds miss out on review and guidance.

Regular funds via Certified Financial Planners offer hand-holding and discipline.

Wrong schemes in direct plans may cost more in the long run.

Focus on SIP and STP investing through regular route.

Wealth Manager Portfolio – Rs. 20 Lakhs, Managed Actively

You have a separate portfolio under wealth manager with 20% return per year.

If return is consistent and audited, this is excellent performance.

Keep reviewing this portfolio every 12–15 months.

Ask for detailed transaction summary and turnover ratio.

Churning too much may lead to tax and costs.

Ask your Certified Financial Planner to cross-check the suitability.

Keep this money invested till 2038 as planned.

Do not merge this with your mutual fund tracking.

It should remain as a separate goal bucket.

ULIP Investments – Rs. 1.75 Crores Value with 15 Years Remaining

Your ULIP value is large. That’s unusual but impressive.

ULIPs combine insurance and investment. This reduces transparency.

Most ULIPs charge high for fund management, mortality, and administration.

Long-term returns may not match mutual funds.

At maturity, reinvest all into mutual funds or equity funds.

Don’t withdraw unless emergency arises.

If some policies are more than 5 years old, consider early exit.

Calculate surrender value and compare with projected value.

ULIPs are hard to track for asset allocation.

Too many ULIPs dilute goal-based clarity.

Focus future investments only in mutual funds, not ULIPs.

Two Existing Properties – Rs. 2.25 Crore Estimated Value

Owning two properties is good for asset safety.

You must account for annual upkeep cost.

Real estate doesn’t give liquidity in need.

It also gives no compounding unless rented or sold.

Rental yield is still very low in India.

Property price growth has slowed in last 10 years.

Don’t rely on these properties for retirement income.

Treat them as safety assets, not wealth builders.

New Mumbai Property – Rs. 2.25 Crore with 10-Year Loan

Buying high-value property on loan must be carefully done.

EMI burden will stay for 10 years.

Check that EMI doesn’t exceed 40–45% of take-home income.

Don’t stop SIPs to pay for EMI.

Check future cash flow for maintenance, interiors, and taxes.

Prime location gives value, but liquidity is still low.

Don’t treat this new house as investment.

Use only for own living or family need.

At Retirement – Where Will You Reach?

You are 15 years away from retirement.

By then, your mutual funds can grow strongly.

With current SIP and some growth, you may cross Rs. 2.5–3 crores.

Gold portion will be Rs. 35–40 lakhs.

Own equity portfolio can be Rs. 35–50 lakhs if handled well.

Wealth-managed portfolio may grow to Rs. 1.2–1.6 crores.

ULIP maturity may be Rs. 4–5 crores if compounding works.

Properties may hold Rs. 5–6 crore nominal value.

Your total net worth can cross Rs. 10–12 crores.

But liquidity may remain in Rs. 5–6 crore range.

You will be financially independent with careful withdrawals.

Start shifting risky investments 2–3 years before retirement.

Build 3 years of retirement expenses in liquid funds.

Reduce real estate dependency at retirement.

Avoid depending on property sale post-60.

Estate Planning and Family Security

Create a Will. It must be registered.

Nominate correctly across all investments.

Share investment tracker with your spouse.

Keep insurance updated for you and family.

Keep enough emergency money till retirement.

Avoid joint property beyond two names.

Don’t mix family loans with assets.

Tax Planning and Tracking

Monitor equity mutual fund gains under new tax rules.

Equity LTCG over Rs. 1.25 lakh taxed at 12.5%.

Short term equity gains taxed at 20%.

Debt fund gains taxed as per income slab.

Avoid churning just to book profits.

Review every March for tax-saving opportunities.

Finally

You are creating wealth across all asset classes.

Your habits show commitment and vision.

Don’t let property pressure affect equity goals.

Keep SIPs running till retirement.

ULIP maturity should be reinvested, not spent.

Don't increase gold or direct equity beyond limit.

A Certified Financial Planner can help rebalance every year.

With patience and discipline, you will retire strong.

Emotional buying in real estate may derail long-term growth.

Your biggest wealth is your investment discipline.

Stay focused. Wealth is already building silently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - Apr 17, 2025
Money
A Doctor od loan required rs:25 lacs against land property value rs:35 lacs and Doctor Gross receipts rs:15 lacs capacity in itr returns. Question: A Doctor rs:25 lacs od loan required estimated and projected value how much amount show for bank loan purpose
Ans: The doctor needs Rs.25 lakhs as an OD loan.

The property offered as security is worth Rs.35 lakhs.

The doctor’s gross receipts as per ITR is Rs.15 lakhs.

Now, let us estimate and project how much income should be shown for loan purposes.

This answer is written for a typical Indian bank loan assessment situation.

Loan Requirement and Asset Collateral

The doctor needs Rs.25 lakhs as OD loan.

The land offered is valued at Rs.35 lakhs.

Most banks accept land as collateral. But only to a certain extent.

Banks usually give only up to 60% of land value as loan.

In some cases, it may go up to 70%, if land is in urban zone.

That means, from Rs.35 lakhs, a maximum of Rs.21-24.5 lakhs may be considered.

Hence, the property alone may not fully support a Rs.25 lakh OD loan.

The bank will look at income capacity also to approve the loan.

The doctor must justify his loan repayment capacity.

Income Capacity Based on ITR

The gross receipts are Rs.15 lakhs per year.

But banks don’t use gross receipts directly for income calculation.

They look at net profit after expenses.

Generally, for professionals like doctors, 50% of gross is considered net income.

That means, Rs.7.5 lakhs per annum could be counted as income.

On that basis, monthly income is Rs.62,500.

Based on that, a loan EMI of Rs.25,000 to Rs.30,000 may be accepted.

This can justify a loan of Rs.25 lakhs under OD scheme.

But if ITR shows lower net income, loan may get reduced.

What Should Be Shown to Bank as Estimate and Projection

The doctor needs to show projected income to match the OD loan.

The bank will seek a projected Profit and Loss Statement.

It must show enough surplus to support Rs.25 lakh OD usage.

Following things must be shown in that estimate:

Projected Gross Receipts of minimum Rs.18 lakhs per year.

Net income of Rs.9-10 lakhs per year should be shown.

Clear monthly surplus after household expenses.

Justification of higher patient flow, more consulting hours, or new clinic set-up.

Mention of better tie-ups with hospitals or new locations.

Show clarity in expense reduction or cost control.

Highlight prior loan repayment discipline, if any.

Show bank statements with good cash flow and regular deposits.

This gives bank confidence on repayment and limits usage.

Property Backing: Conservative Evaluation by Bank

Most Indian banks don’t consider full market value of land.

They apply distress value or forced-sale value method.

For Rs.35 lakhs land, they may consider Rs.28 lakhs only.

And even on that, they give 60% to 70% as security margin.

So, practical loan limit on land is around Rs.20 lakhs.

Therefore, balance Rs.5 lakhs should be supported by income strength.

Key Documents Needed to Strengthen Case

ITR for 3 years with rising income trend.

Bank statements showing steady inflows.

CA-certified projected income and balance sheet.

Clinic ownership or rent agreement.

GST returns, if applicable.

Patient footfall records or appointment logs.

Income Projection Strategy to Show to Bank

Show Rs.18 lakhs as expected gross revenue this year.

Keep expenses around Rs.7-8 lakhs.

This leaves Rs.10 lakhs net income.

Of this, Rs.4 lakhs can be shown as family expenses.

Balance Rs.6 lakhs is surplus available for loan.

That is Rs.50,000 per month available.

Bank will accept EMI or OD interest within Rs.40,000 limit.

This makes the OD of Rs.25 lakhs reasonable.

Keep projections conservative and not over-ambitious.

How OD Loan Gets Evaluated in Bank Credit Policy

OD loan is not like term loan.

It works like a credit line.

Interest is charged only on used amount.

But banks still assess full limit for repayment ability.

OD is given for working capital needs.

So, usage pattern and cash flow cycle is important.

For doctors, OD is generally accepted for clinic expansion, pharma stocks, etc.

Hence, project use-case of OD properly.

Show Realistic Utilisation Plan of OD Facility

Say Rs.10 lakhs will be used for clinic renovation.

Rs.5 lakhs for equipment.

Rs.10 lakhs as contingency buffer.

Mention timeline for usage.

Share estimated income improvement after investments.

Show Collateral Strength Clearly

Get professional valuation of land by certified valuer.

Attach land title deed and encumbrance certificate.

Bank likes clean, marketable land title.

Avoid agricultural or disputed lands.

How to Handle if Bank Offers Lower OD

Sometimes, bank may offer Rs.20 lakhs only.

Ask for enhancement clause after 6 months.

Request OD renewal based on next ITR.

Show improved income next year.

Boost Loan Approval Odds with These Steps

Keep all EMI payments regular.

Avoid bounced cheques in savings account.

Maintain Rs.1 lakh average balance in account.

Get credit report with CIBIL score above 750.

Use professional CA for documentation.

Avoid These Mistakes in Loan Projection

Don’t show sudden jump in income without logic.

Avoid overestimating clinic profits.

Don’t hide liabilities or other EMIs.

Avoid giving false patient inflow data.

Keep records consistent across documents.

360-Degree Insights for Future Planning

Maintain clear separation of personal and clinic expenses.

File ITR on time with correct disclosures.

Use accounting software to track income.

Avoid mixing professional and other incomes.

Build a credit track record with smaller loans first.

Consider a small term loan instead of OD, if rejected.

OD is ideal for cyclic income professionals.

Don’t take OD to invest in stocks or mutual funds.

OD should be linked to business expansion.

Other Tips as Certified Financial Planner

Build an emergency fund separately.

Keep medical insurance updated.

Take professional indemnity insurance if not done already.

Use OD only when needed.

Don’t keep OD usage at peak always.

Pay interest monthly to reduce charges.

Show good credit behaviour to boost future limits.

Finally

Rs.25 lakh OD is possible with Rs.35 lakh land, but only if income supports.

The doctor must project at least Rs.18 lakhs income in estimate.

Net income should be shown above Rs.9 lakhs.

Maintain transparent records.

Keep land documents clean and ready.

Make usage of OD clear and linked to profession.

Bank will evaluate from both property and income side.

Be realistic in income estimates.

Don’t overstate or hide any facts.

With right documentation and projection, OD loan can be approved.

As a Certified Financial Planner, I suggest staying conservative in assumptions.

Focus on building long-term credit profile.

Avoid frequent withdrawals from OD account for personal use.

Stay disciplined in usage.

Reassess financial health annually to avoid debt stress.

Keep improving financial literacy to manage credit better.

Wishing the doctor a financially strong practice and smooth credit journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - Apr 11, 2025
Money
Is it wise to give my hard earned money to my good earning only son for buying a property in UAE and what is the risk
Ans: Understand Your Own Financial Position First

Check if your retirement corpus is already sufficient and growing steadily.

Assess your income sources like pension, rental income, or dividends for post-retirement life.

Ensure that you have an emergency fund set aside for medical or family needs.

Review your health insurance coverage and ensure it is adequate for your future.

If all these are in place, you can consider helping your son. Otherwise, hold back.

Your financial independence should come before generosity. Helping now must not lead to dependency later.

Avoid giving from your retirement savings unless you are fully secure.

Ask These Questions Before Giving

Is your son asking for this help, or are you offering it voluntarily?

Is this a loan, a gift, or a part of your inheritance in advance?

Will you get anything in return, like co-ownership or rental benefit?

Will he repay the amount, and if yes, what is the timeline?

Is this property a necessity for him or a luxury or status-driven decision?

Understand the Financial Risk Involved

UAE property market can be unpredictable and is not regulated like India.

Ownership laws may differ for non-residents. Your name may not be added easily.

There is a risk of market crash or legal issues in foreign countries.

If your son faces job issues or relocates, managing the property can be hard.

Reselling in UAE may take time and may involve high charges or tax.

Your money may get locked up with no real benefit to you.

Emotional and Legal Aspects Matter Too

Relationships can change. Money involvement can create future tension.

There is no legal guarantee your son will return the money unless documented.

Discuss openly with your son before taking a decision.

Document the transaction clearly even if he is your only child.

A written agreement helps avoid misunderstandings in future.

Better Ways to Help Without Risking Your Security

You can consider a partial contribution, not the full amount.

Offer a loan with soft terms, but legally documented.

Instead of giving a lump sum, offer monthly support if needed.

You can consider investing in Indian mutual funds in his name, which he can use later.

Keep some control or co-ownership if investing directly in the property.

Avoid liquidating long-term retirement savings or insurance proceeds to fund this.

Why Emotional Pressure Should Not Drive Financial Decisions

Many Indian parents feel emotional obligation to help children even if it hurts them.

Always think with both heart and mind together.

Your son is already earning well. He can take a loan if needed.

Giving now can affect your peace if your own expenses rise later.

You worked for years to build this money. It must serve your future first.

Final Insights

Helping children is a noble thought, but not at the cost of your safety.

It is better to be financially secure and emotionally supportive than just generous.

If your son is sincere and the property is essential, support in a documented and limited way.

Always consult a Certified Financial Planner before giving a large amount.

Protect your financial health while caring for your family. Both are important.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Money
Hi sir I had invested 42L in mutual funds and spread across,large,mid and small cap. The portfolio value is 51L, additionalu started with 55k Sip, my target to achive 1cr portfolio value. My passion is to purchase land of 1cr and make farm house, in next 3 months . getting 15L lump sump amount from LIC Query is shall I incorporate that fund to existing mutual fund? Shall I invest in land, since am not affordable with 15L to purchase land, suggest me way forward to meet my passion and also to reach 1cr portfolio. I have health insurance of 15L Emergency fund of 3L ULIP policy of 15L I have dependent parents and kid with spouse.
Ans: You have built a strong portfolio and have a clear dream. Creating a farmhouse is a meaningful goal. Balancing this with your Rs. 1 crore investment target needs a structured approach.

Let us evaluate every angle before finalising the path.

? Your Existing Portfolio and Its Strength

Your mutual fund portfolio is already at Rs. 51L. You started with Rs. 42L.

That means your investment has grown well over time.

You are adding Rs. 55,000 every month as SIP. That is a healthy amount.

Your mix of large, mid, and small caps shows diversification is already in place.

This shows discipline and clarity in long-term investing.

This investment base gives you a head start for your Rs. 1 crore goal.

Keep your current SIPs running. Don't stop them.

Reaching Rs. 1 crore in the next few years looks achievable if you stay invested.

? Your Dream of Owning a Farmhouse

You want to buy land worth Rs. 1 crore. You have Rs. 15L available now.

Your passion is respected. Dreams add meaning to our efforts.

But passion must meet practical steps and timelines.

You cannot afford Rs. 1 crore land today. You only have Rs. 15L.

You may get tempted to book with advance or take loan.

Avoid both at this stage. They can cause stress later.

The land purchase will create more future costs — fencing, registration, maintenance, etc.

Land is not a liquid asset. You can’t sell quickly if needed.

Land also gives no regular income or tax benefits.

Let the dream stay. But wait until your financial base is stronger.

? What To Do With Rs. 15L LIC Proceeds

You will receive Rs. 15L from your LIC policy. This is a useful bonus.

Before investing, build clarity on your next 3–5 year plans.

You already have Rs. 3L in emergency fund. That is helpful.

If your health insurance has no large exclusions or co-pay, that is sufficient.

Your parents and child are dependents. Their needs will grow with time.

Keep Rs. 2L from the Rs. 15L as contingency for medical or family expenses.

Use the remaining Rs. 13L for your long-term goals.

? Should You Put This Into Existing Mutual Funds?

Yes. Add the Rs. 13L to your mutual funds in a staggered way.

Don't invest the full amount in one go.

You can spread it over the next 6–10 months using STP.

Systematic Transfer Plan helps reduce entry risk.

Invest this lump sum into a liquid fund first.

Then set up STP to transfer into your existing mutual funds monthly.

Choose allocation based on your current fund mix.

If you are underweight in mid or large cap, you may rebalance through this.

Avoid over-allocating into small caps through lump sum.

Small caps are for SIP only due to volatility.

This approach will bring more stability and better risk control.

Your Rs. 1 crore portfolio goal will now get stronger backing.

? Should You Continue the ULIP Policy?

You are holding a ULIP worth Rs. 15L. Please review its charges and returns.

ULIPs mix insurance and investment. That reduces flexibility.

Charges are higher than mutual funds.

If this is an old ULIP, returns may be low due to policy costs.

Also, you already have mutual fund exposure and health cover.

In most cases, it is better to surrender ULIP after 5 years.

Use the surrendered amount to invest in mutual funds through SIP or STP.

This gives better transparency, returns, and control.

But check surrender charges and compare maturity date too.

A Certified Financial Planner can help analyse the right time to exit ULIP.

? Managing Emotional Attachment to Your Dream

Your farmhouse dream is valid. But do not rush into it.

Many families buy land early and then regret later.

Land is not a wealth builder unless already developed.

You may need to spend on compound wall, water source, and upkeep.

Also, it creates pressure to spend more on building.

Buying under pressure or with loans will delay your other goals.

Let the dream stay alive but move step by step.

Reach Rs. 1 crore in mutual funds first.

After that, revisit your land purchase plan with more flexibility.

Maybe buy a smaller plot or partner with someone trustworthy.

? How To Reach Rs. 1 Crore Portfolio Faster

You are already on track to Rs. 1 crore. But a few steps can help you reach quicker.

Keep your SIP of Rs. 55,000 consistent. Don't reduce it.

Avoid withdrawing money from your mutual fund unless emergency.

Reinvest your ULIP corpus into mutual fund if surrendered.

Don't increase risk just for higher returns. Stick to your current mix.

Review your funds yearly. Rebalance if large deviation occurs.

Review goals yearly to stay focused and not get distracted.

? Family Responsibility Planning

You have dependent parents, spouse, and child.

You must build a long-term safety net for them.

Consider term insurance if not already in place.

It should be large enough to protect their future needs.

For your child, start a separate goal-based SIP.

Don’t mix your farmhouse goal with child education.

Your spouse should be aware of your investments and goals.

Keep records simple and updated for easy tracking.

Ensure nominations are updated in all your investments.

Family awareness adds stability and reduces future stress.

? Evaluate Goal Priority Carefully

You are passionate about land. That’s fine.

But financial freedom must come first.

Land gives emotional satisfaction. Mutual funds give financial growth.

Keep passion on paper until affordability improves.

When your portfolio reaches Rs. 1 crore, you will have more flexibility.

You can then consider partial withdrawal without affecting other goals.

Build in patience. It pays more than passion when it comes to money.

? Avoid These Mistakes

Don’t use the Rs. 15L to give advance for land now.

Don’t take loan to fund land dream.

Don’t stop SIPs to build land corpus.

Don’t mix emotional desire with long-term investing.

Don’t depend on land price appreciation. It is not guaranteed.

Don’t hold ULIP if returns are low. Exit smartly after evaluating charges.

? Final Insights

You are financially aware and focused. That’s your biggest strength.

Your investments have grown well. Your SIPs are strong.

Your family protection is in place with health cover and emergency fund.

You are only one step away from your dream.

But reaching Rs. 1 crore should come first before buying land.

Let your Rs. 15L LIC amount work harder for now.

Don’t rush into land buying unless you can afford the full cost later.

You can fulfil your farmhouse dream by staying on this steady path.

Your patience will make your dream come true at the right time.

Trust the process. Your dream is safe in the hands of your discipline.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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